Hong Kong to tighten its grip on digital assets

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The Hong Kong Financial Secretary Paul Chan did his annual speech regarding budget this week and he elaborated on new regulations concerning digital assets that have been put in place recently.

According to Mr. Chan’s speech, the Hong Kong government has decided to expand its regulatory oversight of cryptocurrencies by boosting the Financial Action Task Force (FATF)-recommended anti-money laundering (AML) and counter-terrorist financing (CTF) compliances.

These new regulations are aimed at the virtual asset service providers, also known as VASPS, that operate within Hong Kong territory.

“Hong Kong is the first jurisdiction in the Asia-Pacific region having successfully passed the FATF assessment. The Government will further enhance Hong Kong’s AML/CTF regime having regard to the recommendations of the evaluation report, and consider incorporating virtual asset service providers and dealers in precious metals, stones, and jewelry into the AML/CTF regulatory framework.” Stated Mr. Chan.
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Popularity inevitably leads to regulation, it seems.